Main Risks for Business in Ukraine: Energy, Workforce, Shadow Economy, and Legislation

European companies operating in Ukraine have identified four key challenges affecting business operations in the country. These threats are relevant not only for European but also for American and Ukrainian enterprises.

This is reported by AgroReview

Energy, Workforce Shortages, and the Shadow Economy in Focus

According to Anna Derevyanko, Executive Director of the European Business Association, the primary risk for businesses has become energy: the stability of company operations depends on both the supply of electricity and its cost. The second challenge is the shortage of workforce and shrinking markets, which is linked to the increase in labor migration, especially after the permission for men aged 18-22 to travel abroad, as well as mobilization processes.

The third significant risk for enterprises is the expansion of the shadow sector of the economy. Derevyanko stated that the volume of the “shadow” in Ukraine has already reached 500 billion hryvnias.

Legislative Instability and Business Prospects

The fourth barrier for businesses is the unstable legislative environment, as companies require transparency and predictability in regulation for effective functioning.

Derevyanko noted that 99% of EBA member companies are operating at full capacity in Ukraine, over 70% expect revenue growth in hryvnias, and 55% in dollars. Additionally, 55% of companies are looking to increase their business development, and 20% plan to invest in investment projects.

Andriy Gunder, President of the American Chamber of Commerce, added that despite the shelling, 91% of member companies remain in Ukraine and are developing their businesses, although 54% of them have already suffered damages during hostilities.